Today’s edition of the Indianapolis Star includes an article detailing the rezoning of “agricultural” property to “excess residential” by their county assessor. Boone County has been particularly affected by this arbitrary rezoning.
Unfortunately, the article implies that the definition of “agricultural” land is ambiguous under the Indiana zoning regulations. Perhaps that is so for other cases, but for the properties in our area that are being “rezoned” there are several specific cases spelled out in the official Indiana “2011 Real Property Assessment Manual and Guidelines“. From Chapter 2, pages 81-83:
Other References
a. Assessors are further directed that all acres enrolled in programs of the United States Department of Agriculture (USDA), Farm Services Agency, and Natural Resources Conservation Service and have received a “farm number” are eligible for classification as “agricultural”. Those acres have been determined by those administering federal programs to be a part of an “agricultural operation”. This applies to non-homestead acreage.
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Other Agricultural Uses
a. A 40 acre parcel, which at one time was a small farm, has since become a mixture of small, scattered trees and brush with less than 50% canopy cover. The assessor classified this parcel as residential excess acreage; the effect of which created a higher assessed value and tax burden than the agricultural soil productivity method.
Conclusion: The current owner purchased the parcel as an agricultural property many years ago. The land is currently uncultivated or fallow, but has not changed use nor been re-zoned. This parcel should continue to be classified as agricultural as it was purchased for agricultural use and is used as “non-tillable land” as defined in the Guidelines.
b. A five acre parcel has a one acre homesite and cattle grazing on the remaining four acres. The assessor classified the four acres using the residential excess acreage rate and refuses to acknowledge the presence of grazing cattle as an agricultural activity because the parcel is less than 10 acres. The county has an unofficial policy of denying agricultural classification to parcels of less than 10 acres.
Conclusion: The grazing of cattle is an agricultural activity; thus, the parcel should be assessed using the agricultural productivity method as it meets the definition of “agricultural operation” in IC 32-30-6-1 and in the Guidelines, which define agricultural “tillable land” as land used “for cropland or pasture that has no impediments to routine tillage.” The size of the parcel has no bearing on the determination of agricultural classification.
c. A five acre parcel has a one acre home site and the remaining four acres is devoted to hay production. The county classified the hay field using the residential excess acre rate. The owner has a signed statement from a neighboring dairy farmer that the neighbor harvests the hay from the field for his cattle.
Conclusion: The acreage meets the criteria of agricultural “tillable land” as defined in the Guidelines. The four acres should be priced using the agricultural soil productivity method. The size of the parcel has no bearing on the determination of agricultural classification.
These examples likely directly apply to many of us in the Traders Point area and should serve as guidance to assessors to not arbitrarily change “agricultural” land to “excess residential”.
According to Pam Faerber, Representative Bob Cherry has draft legislation that would specifically state that “land zoned ‘agricultural’ when purchased and whose use has not changed may not be reclassified”. You are urged to contact your state legislators and voice your support for this change in Indiana zoning law. If you don’t know who your state legislators are you can look them up here.
